Central Bank keeps interest rate at 3.5%

The Central Bank of Kuwait (CBK) decided on Wednesday to keep the interest rate unchanged at 3.5%.

In a statement, the CBK said that, within the framework of its continuous monitoring of the evolution of key global economic and monetary variables and geopolitical developments, along with their potential implications for the local economy, the bank noted that its current assessment of the available local economic and financial data reflects the soundness and resilience of monetary and financial stability in the State of Kuwait, and that monetary trends are consistent with the local economic conditions.

The CBK clarified that the latest monetary and banking data indicate that the broad money supply (M2) increased by approximately 1.9% in July 2026 compared to the corresponding month of the previous year. It also noted that resident deposits in local banks rose by approximately 9.8%, while credit facilities to residents increased by approximately 4.8% in July 2026 compared to the same month in 2025. In this regard, the current discount rate stands at 3.5%.

In conclusion, the CBK reaffirmed its continuous and close monitoring of global and local economic and monetary developments, ensuring the adoption of necessary measures through the deployment of available monetary policy tools and macroprudential instruments, adopting a gradual, balanced, and flexible approach to enhance monetary and financial stability in the State of Kuwait.